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Private Sector Development

Your Cow, Plant, Fridge and Elevator Can Talk to You (But Your Kids Still Won’t!)

Raka Banerjee's picture
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The Internet of Things (IoT) heralds a new world in which everything (well, almost everything) can now talk to you, through a combination of sensors and analytics. Cows can tell you when they’d like to be milked or when they’re sick, plants can tell you about their soil conditions and light frequency, your fridge can tell you when your food is going bad (and order you a new carton of milk), and your elevator can tell you how well it’s functioning.

At the World Bank, we’re looking at all these things (Things?) from a development angle. That’s the basis behind the new report, “Internet of Things: The New Government to Business Platform”, which focuses on how the Internet of Things can help governments deliver services better. The report looks at the ways that some cities have begun using IoT, and considers how governments can harness its benefits while minimizing potential risks and problems.

In short, it’s still the Wild West in terms of IoT and governments. The report found lots of IoT-related initiatives (lamppost sensors for measuring pollution, real-time transit updates through GPS devices, sensors for measuring volumes in garbage bins), but almost no scaled applications. Part of the story has to do with data – governments are still struggling how to collect and manage the vast quantities of data associated with IoT, and issues of data access and valuation also pose problems.

How PPIAF leveraged $17.1 billion for infrastructure by focusing on the critical upstream

François Bergere's picture

Photo: BrilliantEye | iStock

As the only global facility specifically dedicated to reinforcing the legal, institutional and policy underpinnings of private sector participation in infrastructure—which we call the critical upstream—we at the Public-Private Infrastructure Advisory Facility (PPIAF) realize we have a key responsibility to developing countries.

That responsibility is to help client governments unlock their potential by de-risking investments and creating an enabling environment for private sector participation, itself a condition to achieving the Sustainable Development Goals and climate-smart objectives. As such, PPIAF fits neatly into the new Maximizing Financing for Development (MFD) approach to crowd in the private sector, an initiative launched by the World Bank Group and other multilateral development banks last year.

Why investors must take a chance in the world's most fragile countries

Stephanie von Friedeburg's picture
Microfinance in DRC. © Anna Koblanck/IFC
Microfinance in DRC. © Anna Koblanck/IFC

Fragility, conflict and violence affect more than two billion people across the globe. And while poverty on the whole is declining, that's not the case in countries affected by conflict.

It is these countries plagued by near-constant political and economic instability that are often the ones most in need of private investment. Yet they are also the places few private investors are willing to go. The risks seem to outweigh the rewards.

How can we bridge the gap between citizens and state? Previewing the Open Budget Survey 2017

Vivek Ramkumar's picture

 Photo © Dominic Chavez/World Bank
Photo © Dominic Chavez/World Bank

On 30 January 2018 the International Budget Partnership (IBP) will release the Open Budget Survey 2017 – the latest round of the world’s only independent and comparable assessment of budget transparency, citizen participation, and independent oversight institutions in the budgeting process.

The OBS 2017 findings on the systems and practices that countries have in place to inform and engage citizens — or not — in decisions about how to raise and spend public resources, and on the institutions that are responsible for holding government to account, come at a critical juncture. Around the world, there has been a decline in public trust in government, in part due to instances of corruption but also because of dramatic increases in inequality. In a number of countries, leaders who have disguised their intolerant and reactionary agendas with populist rhetoric have been swept into power by those who’ve been left behind. These political shifts have driven out many government champions of transparency and accountability — especially those from countries in the global south.  More broadly across countries, there has been shrinking of civic space, rollbacks of media freedoms, and a crackdown on those who seek to hold government to account, including individual activists, civil society organizations, and journalists.

Can Islamic finance unlock funds for development? It already is

Amadou Thierno Diallo's picture

Also available in  العربية | Français

Two years in the making, last week the Islamic Development Bank Group (IsDBG) and the World Bank Group officially launched the landmark report Mobilizing Islamic Finance for Infrastructure Public-Private Partnerships at a discussion broadcast online from Washington, D.C. We illustrated that, through partnerships, the power of Islamic finance can be instrumental in unlocking financial resources necessary to meet the tremendous demand for critical infrastructure.
In fact, infrastructure PPPs funded with Islamic finance have proliferated in the Middle East, and have flourished in other countries throughout Africa and Asia. Both of our institutions are committed to leverage our competitive advantages, achieve effective interventions, and yield measurable results in scaling up and broadening the use of Islamic finance.

Building trust and improving the business environment: A win-win proposition

Steve Utterwulghe's picture

Since the Edelman company began tracking trust with its Trust Barometer, never has the world seen such an “implosion of trust.” In 2017, two-thirds of countries fell into “distruster” territory with trust levels of below 50 percent. Governments are now distrusted by investors in 75 percent of countries, and the same  is the case for business in 46 percent.

Africa’s partnership with the G-20: Compact with Africa in 2018

Jan Walliser's picture
Expansion of the Azito Thermal Power Plant, in Côte d'Ivoire, will improve access to electricity for Ivoirians and help sustain the country's economic growth. © Cedric Favero/IFC
Expansion of the Azito Thermal Power Plant, in Côte d'Ivoire, will improve access to electricity for Ivoirians and help sustain the country's economic growth. © Cedric Favero/IFC

Editor's Note: Below is a viewpoint from Chapter 6 of the Foresight Africa 2018 report, which explores six overarching themes that provide opportunities for Africa to overcome its obstacles and spur inclusive growth. Read the full chapter on the changing nature of Africa's external relationships here.

Germany’s presidency of the G-20 in 2017 introduced a new initiative for supporting African countries’ development: the G-20 Compact with Africa. The compact brings together interested African countries with the World Bank Group, the International Monetary Fund, the African Development Bank, and other multilateral and bilateral partners to develop and support policies and actions that are essential for attracting private investment. To date, 10 countries have signed up for the initiative and outlined their aspirations and reform programs under a framework adopted by the G-20 finance ministers in March 2017. 

Can predicting successful entrepreneurship go beyond “choose smart guys in their 30s”? Comparing machine learning and expert judge predictions

David McKenzie's picture

Business plan competitions have increasingly become one policy option used to identify and support high-growth potential businesses. For example, the World Bank has helped design and support these programs in a number of sub-Saharan African countries, including Côte d’Ivoire, Gabon, Guinea-Bissau, Kenya, Nigeria, Rwanda, Senegal, Somalia, South Sudan, Tanzania, and Uganda. These competitions often attract large numbers of applications, raising the question of how do you identify which business owners are most likely to succeed?

In a recent working paper, Dario Sansone and I compare three different approaches to answering this question, in the context of Nigeria’s YouWiN! program. Nigerians aged 18 to 40 could apply with either a new or existing business. The first year of this program attracted almost 24,000 applications, and the third year over 100,000 applications. After a preliminary screening and scoring, the top 6,000 were invited to a 4-day business plan training workshop, and then could submit business plans, with 1,200 winners each chosen to receive an average of US$50,000 each. We use data from the first year of this program, together with follow-up surveys over three years, to determine how well different approaches would do in predicting which entrants will have the most successful businesses.

Guarantees light the way for clean energy through renewable auctions

Arnaud Braud's picture

Photo: Scaling Solar project in Zambia

What is a common thread between Argentina, Maldives, and Zambia? In each of these countries, the World Bank provided guarantees to support transparent auctions for renewable energy. Through these, I have seen how the Bank’s involvement helped increase private investors’ confidence, attract world-class developers, and ultimately reduce tariffs.

Drawing on 10 years of diverse experience in the power sector in both public and private organizations, my role is to help bridge the divide between public and private parties and help each side better understand the other. The World Bank is ideally positioned for this. Both sides understand the World Bank carries out a detailed due diligence and ensures the auction meets international standards. Both sides appreciate the World Bank will be an honest broker if issues arise. Because of its long term and continuous involvement in our client countries, the World Bank can help identify and solve issues early on. As such, no World Bank project-based guarantee has ever been called.

Rebuilding houses and livelihoods in post-earthquake Nepal

Mio Takada's picture
When the 2015 earthquake hit Nepal, Fulmati Mijar lost her home and livelihood. Now, she has turned her life around, learned carpentry and quake-resistant techniques, and started a business
When the 2015 earthquake hit Nepal, Fulmati Mijar lost her home and livelihood. Now, she has turned her life around, learned carpentry and quake-resistant techniques, and started a business. Credit: World Bank.

Fulmati Mijar, a mother of three living in Nuwakot district in Nepal, used to earn her living from daily wage labor along with her husband.
On April 25, 2015, their lives took a turn for the worse when a magnitude 7.8 earthquake struck Nepal, killing 8,790 people and affecting 8 million more—or nearly a third of the country’s population.
The catastrophe destroyed Fulmati’s house and made her family more vulnerable.
Yet, it did not dent her resolve.
When housing reconstruction started through the Earthquake Housing Reconstruction Project (EHRP), Fulmari joined her village’s Community Organization (CO), supported by the Poverty Alleviation Fund (PAF) and learned carpentry and earthquake-resistant techniques for housing reconstruction.
She initially received a NPR18,000 ($176) loan to invest in a small furniture enterprise. With the funds, her family started making windows, doors, and kitchen racks, which were in high demand. After repaying the loan, she received another loan to upgrade their furniture enterprise, where today she and her family make their living.
At the time of the 2015 earthquake, full recovery was estimated to cost $8.2 billion, with the housing recovery component amounting to $3.8 billion. The World Bank immediately pledged $500 million to support the emergency response. During the reconstruction phase, the most urgent—and largest—need was to rebuild nearly 750,000 houses.
More than two years since the earthquake, restoring lost or affected livelihoods has become more important.